Nifty, Sensex Likely to See Muted Start Amid Israel-Iran Tensions
On Friday, June 20, Nifty 50 and Sensex are likely to have a muted start, after Asian peers traded mixed, U.S. futures edged lower amid escalating Israel-Iran tensions. Institutional flows remained positive, with FIIs and DIIs continuing to buy into Indian equities.
As of 7:18 AM, the GIFT Nifty was trading near the 24,793 mark, up by 6 points from its previous close. This suggests that Indian markets are likely to witness muted opening.
Asian markets traded mixed amid a lack of decisive cues from the U.S. stock market, which was closed on Thursday in observance of Juneteenth National Independence Day 2025. However, on Friday morning, U.S. stock futures declined due to caution over the escalating Israel-Iran conflict.
Regarding the institutional flow, the DIIs in Indian equities have remained net buyers for the past 23 trading sessions.
On Thursday, June 19, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹934.62 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹605.97 crore during the same session.
The White House has announced that U.S. President Donald Trump is expected to make a decision within the next two weeks on whether the United States will intervene in the ongoing air conflict between Israel and Iran. Tensions in the Middle East have escalated sharply, after reports indicate that Israel has launched strikes on Iran’s nuclear facilities, while Iran has responded with missile and drone attacks targeting various locations in Israel, including a hospital hit during an overnight assault.
On Thursday, the Indian stock market closed marginal losses, with the Nifty 50 finishing just below the 24,800 mark. The Sensex declined by 82.79 points (0.10%) to end the session at 81,361.87, while the Nifty 50 dipped 18.80 points (0.08%) to settle at 24,793.25.
Asian peers traded mixed on Friday as sentiment remained cautious amid continued concerns over the Israel-Iran conflict.
The People's Bank of China decided to keep its key lending rates steady on Friday. The one-year loan prime rate (LPR) remains at 3.0%, while the five-year LPR stays unchanged at 3.5%. This comes after a rate cut in the previous month—China’s first since October.
Japan’s core inflation, which excludes the impact of fresh food prices, rose to 3.7% in May, slightly higher than the 3.5% year-on-year increase reported in April. This indicates a continued upward trend in consumer prices.
The U.S. stock market was closed on Thursday for the Juneteenth holiday. However, US stock futures traded lower ahead of Friday’s session.
Crude oil prices declined during the session, though they remained on course for a third consecutive weekly gain, supported by rising tensions between Israel and Iran. Brent crude futures slipped 1.89% to settle at $77.36 per barrel, yet posted a weekly gain of 3.9%. In contrast, U.S. West Texas Intermediate (WTI) crude for July delivery edged up 1.14% to $76.00, while the more actively traded August contract advanced 0.7% to $74.00.
Gold prices held steady as heightened geopolitical risks in the Middle East kept investors cautious, especially amid concerns about potential U.S. involvement. Spot gold hovered around $3,367.60 an ounce, showing little change on the day. However, bullion prices have dropped 1.9% over the week.
Disclaimer: The article is for informational purposes only and not investment advice.
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